Survey: Alternative payment methods grow in acceptance
By Jeremy M. Simon | Published: May 14, 2007
A recently completed survey from the consulting firm Brulant found a 267 percent spike in the acceptance of nontraditional payment methods by some of the biggest e-commerce chains over a four-month period.
Brulant released the full results from its October 2006 and February 2007 survey, which considered what forms of payment were accepted at the websites of 100 of the top online retailers, such as Staples, Wal-Mart and J.C. Penney. PayPal, Bill Me Later and Google Checkout were among the alternative payment methods considered.
But before consumers start cutting up their credit cards, they should be aware that those sites offering nontraditional payment made up just 24 percent of the sample.
Visa, MasterCard and American Express and other traditional credit cards and debit cards were still the only payment option at 76 percent of the websites, meaning that plastic is still needed for e-commerce. But since retailers are known for being slow to accept fundamental changes, the near tripling in nontraditional payment acceptance is a major development.
Brulant 's survey found that PayPal had 6 percent of the market, while Google checkout controlled 5 percent of the market. Both were far outpaced by Bill Me Later's 17 percent market share.
Weighing the possible reasons for the surge in acceptance, Brulant highlighted the fact that with the initial survey performed in early October, retailers may have not yet launched all of their holiday services.
Meanwhile, retailers seemingly have become more open to the idea of payment alternatives amid general dissatisfaction the interchange fees charged by major credit card issuers.
- Cash advance survey 2017: Read fine print before seeking quick cash – A review of 100 credit card cash advance policies found cash advance transactions can quickly consume an available credit line with fees, high interest charges, among other undesirable terms ...
- Household debt passes pre-recession peak, NY Fed finds – U.S. household debt has surpassed its pre-recession peak for the first time, says new data from the New York Fed. Economists say milestone doesn't mean consumers are over-leveraged ...
- Poll: Credit card fraud alerts surge, false alarms still common – Consumers report a 15 percent increase in contacts from banks about credit, debit card fraud ...